2. In the competitive mink oil industry, each fim has the same cost function: C = 10,000 100 + 0.01q. Demand for mink oil is as follows: Q = p2 What will be the long-run equilibrium price and quantity in the market? How many fims are in the industry?

2. In the competitive mink oil industry, each fim has the same cost function: C = 10,000 100 + 0.01q. Demand for mink oil is as follows: Q = p2 What will be the long-run equilibrium price and quantity in the market? How many fims are in the industry?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Help
Will, Jill, and Phil are all wheat farmers. The wheat industry is perfectly (purely) competitive. The first chart shows how much each farmer produces at different price levels. The second chart shows each farmer's minimum average total cost (ATC), average variable cost (AVC), and marginal cost (MC). Based on this data (assuming these three are the only producers), plot the industry supply curves: one for the short run and one for the long run. Short‑run quantity supplied Price Will Jill Phil $2.00 4 2 0 $4.00 6 4 2 $6.00 9 5 4 $8.00 12 8 6 Firm Will Jill Phil Minimum ATC $2.50 $5.00 $7.00 Minimum AVC $1.00 $2.00 $2.50 Minimum MC $0.50 $1.00 $2.00
a) Draw a graph with supply and demand curves that intersect and establish a market equilibrium price of $10 per unit and equilibrium market quantity of 100 units. Be sure to label your graph completely.
Consider the market for solar power. Assume the market is perfectly competitive and initially in long-run equilibrium; solar power sells for $.25 per kwh (kilowatt hour, a unit of power). Next, to encourage conservation, Congress taxes all forms of energy EXCEPT solar power, causing an increase in the demand for solar Show what happens to the market and the firm in the short run; indicate clearly what happens to price, quantity, and profit.
Suppose that an industry's long-run minimum averagé total cost is $2 per unit of the good. If market demand is as shown in the following graph, what is the long-run equilibrium price and quantity in the market? price $3 $2 $1 $2,1 $2,2 $3,1 $1.3 1 2 3 Demand quantity
Instructions: Answer to the best of your ability. Show all of your work, the details, excel tab. The Market for Good X is perfectly competitive, with market supply and own-price demand curves given as q_s=-25000 + 3000p q_d=135000-5000p a. Determine the equilibrium price and quantity in the market for good x. (Note: You are not anlayzing an individual firm here. You are analyzing the entire market). Suppose the individual firm's average total costs are dfined by TC=1/3q^3-3q^2+28q+2 b. What is the firm's demand curve (don't give me back the industry demand curve. The firm's demand curve is what I want.) c. find the profit maximizing level of output for the firm (I've given the marginal cost curve below). MC=q^2-6q+28 d. If this firm is making a profit (loss) how much is the profit (loss)?
The soybean industry is a constant cost industry. A new study revealing negative health effects of soymilk permanently decreases the number of buyers in the soybean market. Due to the decrease in demand, the equilibrium price of soybeans ______ in the long run, the equilibrium quantity of soybeans ______in the long run, and the number of firms in the market will _____ in the long run. Word Bank: Decreases, Decreases, Decreases, Increases, Increases, Increases, does not change, does not change, does not change.
Assume the market for oil is perfectly competitive, with the following market demand and supply curves (price in S and quantities in millions of barrels per day): Qd=95-P Qs= 15 + 3P Find the equilibrium price and quantity exchanged in this market.
The graph shows a firm in a perfectly competitive market making a profit. The graph includes the firm's marginal cost curve, average total cost curve, and average variable cost curve. Assume the market price is $28. 1.) Use the line drawing tool to graph the firm's demand curve. Label this line 'Demand'. 2.) Use the point drawing tool to plot the firm's profit-maximizing price and quantity. Label this point 'Point A'. 3.) Use the rectangle drawing tool to shade in the firm's profit (Profit/Loss). Properly label this shaded area. Carefully follow the instructions above, and only draw the required objects. Price and cost 48- MC 44- 40- 36- 32- ATC 28- AVC 24- 20- 16- 12- 8- 4- Quantity
The market for paperback detective novels is perfectly competitive. Market Demand is given by Q=106-7P. Market Supply is given by P=5+2Q. What is market QUANTITY? Enter a number only. Remember, fractions of goods are possible.
The table below shows the weekly marginal cost (MC) and average total cost (ATC) for Buddies, a purely competitive firm that produces novelty ear buds. Assume the market for novelty ear buds is a competitive market and that the price of ear buds is $6.00 per pair. Buddies Production Costs Quantity MC ATC of Ear Buds ($) ($) 20 1.00 25 2.00 1.20 30 2.46 1.41 35 3.51 1.71 40 4.11 2.01 45 5.43 2.39 50 5.99 2.75 55 8.47 3.27 Instructions: In part a, enter your answer as the closest given whole number. In parts b-d, round your answers to two decimal places. a. If Buddies wants to maximize profits, how many pairs of ear buds should it produce each week? pairs b. At the profit-maximizing quantity, what is the total cost of producing ear buds? 2$ c. If the market price for ear buds is $6 per pair, and Buddies produces the profit-maximizing quantity of ear buds, what will Buddies profit or loss be per week? 2$
The graph on the right shows cost curves for a perfectly competitive firm. Firm's Supply Curve Use the point drawing tool to identify price-quantity combinations for the prices of $20, $30, $50, and $80 per unit of output. 120- MC 110- Carefully follow the instructions above, and only draw the required objects. 100- AC 90- If there are 100 identical firms in the market, what will be the market supply (to the 80- nearest 100) at these prices? 70- AVC Price Market Supply 2 60- $20 9 50- $30 40- $50 30 20- $80 10- 0- 100 120 140 160 180 Output 20 40 60 80 étv 20 MacBook Air DII 80 F9 F5 F3 F2 #3 $ & 3 4 5 6 9 { E R Y P F G H J K > C V N M command op レレ .... P. AC, AVC, MC B ト